The Challenges Faced by Logistics Organisations in the UAE Dissertation

The Challenges Faced by Logistics Organisations in the UAE - Dissertation Example This research study aims to study and analyse the challenges faced by transport organizations in the UAE. The financial crisis created many economic problems for various business sectors in Dubai that includes the supply chain and logistic sector. Therefore this research will discuss the adverse effects of global financial crisis and its implications to transport industry in Dubai as a whole. On a positive a report by Business Monitor International (2011) cites Frost and Sullivan (2010) who consider UAE as a growth market for freight and logistics. Their study found that the Emirates’ logistics market is set to generate record revenues this year, and will continue to grow over the medium term as a result of its concerted effort to place itself at the centre of the global freight forwarding network. But there are challenges galore due to constant threats to supply chains in the region with the talk of war in the region as well as due to overcapacity and a drop in demand continu ally threatening to push down rates and impinge on profits. The UAE’s primary ports are forecast to grow over the medium term, though at a slower rate than before the economic crisis. The air and logistics sectors in the UAE are continuing to grow at a rapid pace, with more logistics companies relocating their hubs to the country, and national air carriers continuing to expand and post improved results. 1.1 Academic Relevance: It is important to study the topic due to its academic relevance. Supply chain and logistic are key industries in the UAE and act as the life blood of business in the UAE, with little manufacturing base. The major chunk of Dubai’s economy is based on logistic industry and problems arising in this industry may have serious implications on the business... UAE is collectively known worldwide as a regional hub that serves numerous multinational organizations by facilitating and providing much needed economic, social and technological infrastructure. Similarly, on the other hand, Dubai as a city is known globally as a financial hub of the Middle East. In the last two decades or so, Dubai has transformed itself significantly to construct state of the art infrastructure in almost every field and discipline. Under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum who is the current ruler of Dubai and also the Prime Minister of UAE, Dubai has focused on bringing reforms in education, health, hospitality, real estate, transport, logistics and in the overall economy. Unlike Abu Dhabi that is dependent on oil and gas resources for revenue generation, Dubai’s economy is based on different clusters which include trading, shipping, logistics, banking, real estate, construction and most importantly tourism. Since the research is based on highlighting issues related to supply chain; trading, shipping, transportation and logistics activities will be discussed primarily. Dubai which is the business hub of Middle East is strategically placed to serve China and other industrial nations with regards to importing goods. Dubai as a city is one of the biggest importers of Asian goods in Middle East and therefore is also classed as a re-exporting hub of Middle East and North Africa.